Samsung wins its biggest order

Samsung has won a 1.58 trillion won ($1.5 billion) order from Kuwait’s United Arab Shipping Co. (UASC) for nine large container vessels, the biggest order for both companies. The first of the 13,100 teu ships will be delivered in October of 2010, and the rest will follow in short order, with the last vessel being delivered in the 4th Quarter of 2011.

Bigger ships make economic sense because shipping lines can operate one large one instead of two and save on costs. Samsung Heavy received $9.3 billion in orders this year, achieving 60% of its annual target of $15.5 billion. Today’s order extended the company’s order backlog to about $45 billion, representing almost four years of work.

UASC currently operates a fleet of 41 cellular container vessels with 3 more being delivered later this year and 10 more in 2009. By the time the latest nine sister ships have been delivered, the fleet will comprise more than 60 modern container ships able to carry about 270,000 teu.